EUR/USD Price Analysis: Directs 200-DMA breakdown towards 1.1950

EUR/USD remains on the back foot near the lowest levels in two months.
Poised for further downside on key SMA breakdown, bearish Momentum.
Horizontal area from early February lures sellers, bulls have a bumpy road to return.

Anil Panchal FXStreet

EUR/USD bears take a breather with mild losses around 1.1990, following the heaviest slump since March 2020, during Thursday’s Asian session. Even so, the quote remains below 200-day SMA (DMA) amid a downbeat Momentum line, suggesting further declines.

However, a horizontal area comprising multiple levels marked since early February around 1.1950-40 could restrict the quote’s immediate downside.

Also acting as the key support is the 61.8% Fibonacci retracement of November 2020 to January 2021 upside, near 1.1890.

If at all the quote remains offered below 1.1890, the early March lows of 1.1835 and the yearly bottom surrounding 1.1700 will be crucial to follow.

Meanwhile, a clear upside break of 200-SMA, around 1.2000, isn’t a free pass to the EUR/USD buyers as Friday’s bottom surrounding 1.2090 and early June’s low close to 1.2105 could restrict the pair’s recovery moves.

Also likely to challenge the pair’s upside could be the 23.6% Fibonacci retracement level of 1.2175 and a horizontal line stretched from late February around 1.2245.

To sum up, EUR/USD may witness a consolidation based on the Momentum line’s conditions but bulls are far from back to normal life.

EUR/USD daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.1988
Today Daily Change	-0.0006
Today Daily Change %	-0.05%
Today daily open	1.1994

Trends
Daily SMA20	1.2173
Daily SMA50	1.2098
Daily SMA100	1.204
Daily SMA200	1.1995

Levels
Previous Daily High	1.2135
Previous Daily Low	1.1994
Previous Weekly High	1.2218
Previous Weekly Low	1.2093
Previous Monthly High	1.2266
Previous Monthly Low	1.1986
Daily Fibonacci 38.2%	1.2048
Daily Fibonacci 61.8%	1.2081
Daily Pivot Point S1	1.1948
Daily Pivot Point S2	1.1901
Daily Pivot Point S3	1.1807
Daily Pivot Point R1	1.2088
Daily Pivot Point R2	1.2182
Daily Pivot Point R3	1.2229

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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